Laws and Procedures

Transcription

1 Bank Depository Contracts Laws and Procedures Finance Council Advisory Meeting February 15, 2013 THE LAW (TEC Chapter 45 Subchapter G) School depository may be selected only as provided by TEC District must use a uniform bid or proposal blank in the form prescribed by SBOE rule TAC Contract must be renewed every two years Must coincide with fiscal year 1

2 Institutions Authorized to Serve as Depositories Only a Bank Defined as a bank, a savings and loan association, or a savings bank organized under the laws of this state another state or federal law Main office or branch office in this state Deposits must be insured by FDIC Term of Depository Contract Term of 2 year and Until a successor is selected and has qualified Both agree to extend for two additional two year terms District must submit a completed and signed board resolution form 2

3 Selection of Depository 60 days before current contract expires choose method of procurement Competitive bidding or through request for proposals 30 days before termination of contract must mail to each bank located in the district notice stating time and place At least two banks must receive bid notice in every case. Selection of Depository Notice must include uniform bid or proposal p blank forms District may add other terms Do not unfairly restrict competition Board member is a stockholder, director, employee of bank may not vote Tie Bids Options By Lot Award contract to each of the banks 3

4 Selection of Depository Highest and Best Bid or highest ranked proposal board must consider; Interest rate on time deposits Charges for keeping district accounts, records and reports and furnishing checks Ability of the bank submitting the bid or proposal to provide the necessary services Perform the duties as depository Any other judgment of the board would be in the best interest of district Board has right to reject any and all bids or proposals Selection of Depository District may select more than one depository Bank must make and enter into a depository contract setting forth duties and responsibilities 4

5 TEA Required Documents and Procedures District required to file; Depository contract Depository contract Accepted bid or proposal If applicable surety bond All Financial Reports - TEA prescribed forms TEA Required Documents and Procedures List of documents must be submitted Three completed and signed depository contract for funds forms One depository contract data sheet, completed and signed One copy of the accepted bid form for depository services or proposal One vendor direct deposit authorization form If applicable one completed and signed Texas School Depository Surety Bond Form TEA Must received these documents by June 15,

6 Cashier s Check Amount should not be excessive Should be sufficient to cover the costs incurred by the district during the bidding/proposal process and any costs the district will incur in seeking new bids/proposals Securities District must review the securities pledged by depository or the amount of surety bond District must keep copies of receipts for pledged securities in file Approved pledged securities must be adequate to protect the funds of the district as directed at any time by board and TEA (Day to Day) 6

7 Collateral Pledge Agreement In Writing Approved by Board of directors of depository institution Official record of the bank FDIC Insurance Coverage and Amount of Securities FDIC insurance coverage limit 250,000 School deposits require approved security pledge or surety bond coverage or both to the extent not covered by FDIC. 7

8 Bank Closing May select a new depository if original bank closes FDIC negotiates a contract with new bank to honor pre-existing depository contracts District must notify TEA immediately of any changes Complete new vendor direct deposit Contact Information Dana Flores, Division of Financial Compliance Dana.Flores@tea.state.tx.us 8